Among 142 countries, the competitiveness ranking of the Philippines is now at no. 75, up 10 notches from the previous year, in this year’s Global Competitiveness Report (GCR)—an annual report, prepared by the World Economic Forum (WEF), that “assesses the ability of countries to provide high levels of prosperity to their citizens.” The jump is considered to be one of the biggest improvements in the 2011 report.

The WEF stated, “Up 10 places to 75th, the Philippines posts one of the largest improvements in this year’s rankings. The vast majority of individual indicators composing the GCI [Global Competitiveness Index] improved, sometimes markedly.” Since 2005, the WEF has looked to the GCI on which to base its competitiveness analysis. The GCI is “a comprehensive tool that measures the microeconomic and macroeconomic foundations of national competitiveness.”

The record progression in the country’s overall competitiveness ranking was credited to the following categories: business sophistication, financial market development, goods market efficiency, higher education and training, innovation, institutions, macroeconomic environment, market size, and technological readiness.

Furthermore, the WEF reported, “The macroeconomic situation of the Philippines is more positive: the country is up 14 places to 54th in the macroeconomic environment pillar, thanks to slightly lower public deficit and debt, an improved country credit rating, and inflation that remains under control.”

Of 111 indicators, the report lists 17 as competitive advantages of the country. These include, among others, HIV prevalence (no. 1), available airline seat (no. 28), domestic market size (no. 31), willingness to delegate authority (no. 33), of staff training (no. 34), and foreign market size (no. 40).

However, the Makati Business Club (MBC), the WEF partner institute, cites the Philippines’ ranking as the worst among eight Southeast Asian nations included in the survey with regard to institutions and labor market efficiency as a cause for concern. Based on the WEF’s Executive Opinion Survey in the last four years, the top three problematic factors for doing business in the Philippines remain to be corruption, inefficient government bureaucracy, and inadequate supply of infrastructure.

The National Competitiveness Council’s current efforts aim to tackle such problematic factors, according to the MBC. Ramon del Rosario Jr., MBC chairman, noted that the Philippines’ improved ranking is chiefly due to the government’s efforts to battle corruption and address governance issues.

National Competitiveness Council cochairman Guillermo Luz asserted, “We are on track with our targets”—that is, breaking into the top 30 in the Global Competitiveness Report ranking in five years.

“Notwithstanding these challenges, we are pleased with the progress made thus far and the significant jump in our ranking to No. 75. We have reorganized and revitalized 10 working groups or task forces who are concentrating on finding solutions to the challenges and we are confident that solutions can be delivered in our time,” Luz shared.

For over thirty years, the Geneva-based WEF’s annual flagship publication, the GCR, has analyzed and measured the numerous aspects behind national competitiveness. The rankings are computed from data available to the public and the Executive Opinion Survey, an all-inclusive yearly survey conducted by the WEF in cooperation with its partner institutes.

Of the fourteen thousand business leaders polled worldwide this year, roughly ninety participants were from the Philippines. These include members of the Makati Business Club, the Management Association of the Philippines, the Business Processing Association of the Philippines, and the Semiconductor and Electronics Industries in the Philippines Inc.

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